(a) Duty of care.--
(1) A manager shall manage the nonprofit association:
(i) in good faith;
(ii) in a manner the manager reasonably believes to be in the best interests of the nonprofit association; and
(iii) with such care, including reasonable inquiry, as a prudent person would reasonably exercise in a similar position and under similar circumstances.
(2) A manager may rely in good faith on any opinion, report, statement or other information provided by another person that the manager reasonably believes is a competent and reliable source for the information.
(b) Conflicts of interest.--
(1) A manager owes a fiduciary duty of loyalty to the nonprofit association with respect to the responsibilities of the manager.
(2) After full disclosure of all material facts, a specific act or transaction that would otherwise violate the duty of loyalty by a manager may be authorized or ratified by a majority of the members that are not interested directly or indirectly in the act or transaction.
(c) Presumption.--A manager that makes a judgment in good faith satisfies the duties specified in subsection (a) if the manager:
(1) is not interested, directly or indirectly, in the subject of the judgment and is otherwise able to exercise independent judgment;
(2) is informed with respect to the subject of the judgment to the extent the manager reasonably believes to be appropriate under the circumstances; and
(3) believes that the judgment is in or not opposed to the best interests of the nonprofit association.
(d) Limitation of liability.--
(1) Except as set forth in paragraph (2), the governing principles in record form may provide that a manager shall not be personally liable, as a manager, for monetary damages for any action taken unless:
(i) the manager has breached or failed to perform the manager's duties under this chapter; and
(ii) the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness.
(2) Paragraph (1) shall not apply to:
(i) the responsibility or liability of a manager under a criminal statute; or
(ii) the liability of the manager for the payment of taxes under Federal, State or local law.